If you are looking for an affordable way to secure your family’s future in your absence, term insurance is surely a perfect option available for you. In the event of your unfortunate death, term insurance provides a financial corpus to your dependents.
In today’s unprecedented times, this insurance policy plays a major role in your family’s financial protection. Additionally, it also carries several other benefits that make it an ideal investment avenue in many cases.
Moreover, with the advent of technology, term plans are now also available online for purchase. This article explains the basics of term insurance, cites its benefits, and describes why it makes sense to purchase this policy online.
What is a Term Plan?
Term insurance is a kind of life insurance policy that covers you for a specific period of years. In case you die during the policy tenure, a death benefit is paid to your selected nominee. It is much more affordable than permanent life insurance and provides sufficient coverage.
However, unlike conventional insurance policies, term insurance carries no cash value, which means there’s no other monetary value offered by these plans apart from the death benefit, but it still features a lot of benefits to make your investment worthwhile.
Benefits of Term Plans
Let’s take a look at the various benefits offered by term insurance in detail:
High Sum Assured
Term plans are known as one of the simplest forms of life insurance that makes them highly affordable. In comparison to a whole life plan, term insurance requires lower premiums. Moreover, the earlier you purchase a term plan, the more affordable it becomes.
Furthermore, if you purchase a term plan online, you can even enjoy lower premiums as insurers enjoy more cost savings when processing applications online. You can even compare multiple term plans online and streamline your research.
Tax Benefits
By purchasing a term plan, you can also enjoy tax savings under two sections of the Income Tax Act of India, 1961. As per section 80C, the premiums paid for the policy benefits offer a tax deduction of up to Rs. 1.5 Lakhs.
Moreover, according to section 10(10D), the death benefit offered to your nominee is also exempt from taxation. If you choose the maximum coverage available under the policy, you can make the most of the available tax benefits.
Easy to Understand
When purchasing life insurance, you may come across several technical terms that make it difficult for you to understand the various aspects of a policy. However, term plans, on the other hand, are fairly easy to understand.
Being a pure life cover, there’s no investment component in term plans. All you have to do is pay the premiums and the insurer will make sure that your family is covered in case of your unfortunate demise during the policy tenure – it’s that easy.
Purchasing a Term Plan Online – What Are the Benefits?
As stated above, nowadays you can purchase term plans online to make the process more convenient for you. It not only requires less paperwork but also saves you more on the costs incurred as compared to a policy you take by walking into the branch.
Moreover, keeping the present pandemic situation in mind, it’s better to avoid physical contact and prefer getting a term plan online and preventing the spread of the disease. Let’s take a detailed look at the other benefits of purchasing a term plan online:
Convenient
While choosing a term plan online, you can compare several plans from different providers at the convenience of your home. On the other hand, going through the traditional process of seeking insurance agents is much more complicated and limited.
Affordable
As we’ve already cited, online term plans are cheaper than traditional term plans because, with online availability, insurers cut down on several costs incurred on their end. This includes setting up a physical branch, hiring experts for interacting with people, and a lot more.
Transparent
With online term plans, you are aware of everything included in the policy. In simple terms, you know what you’re paying for and all the required costs and charges are showcased transparently on the insurer’s website.
Multitude of Options
The online availability of term plans also facilitates personalization and you can choose from a large variety of options as per your requirements. Moreover, as you can also have a side-by-side view of multiple plans, retaining information and comparison becomes easier as compared to when consulting an insurance agent.
Best Term Plans Available in India
Canara HSBC OBC iSelect Star Term Plan
The iSelect Star Term plan is comprehensive term insurance with multiple options like covering your spouse in the same policy, whole life coverage, and return of premium. It also offers flexibility in premium payment options and benefits offered.
ICICI Pru iProtect Smart
The iProtect Smart is an affordable term plan that offers various additional riders such as critical illness benefit and accidental death benefit to extend the coverage of your policy beyond the occurrence of death. The plan also provides tax benefits under the Income Tax Act of India.
Future Generali Flexi Online Term Plan
The Flexi Online term plan by Future Generali allows you to choose the desired policy duration and keeps your family protected in the event of your death. If you’re a female, you can enjoy further rebates through this policy as well.
Bottom Line
Term plans have gained a lot of popularity lately because of their intuitive and transparent features. Moreover, ever since these plans are made available online, it has become even easier to protect your loved ones in the event of your unfortunate death.
Therefore, if you haven’t already covered yourself with life insurance, it’s a good time to zero in on a term plan and live a stress-free life. There are several amazing term insurance plans available with ranging features to help you secure a financially sustainable future for your family.
